An Empirical Study On The Influence Of China's Outward Direct Investment And Industrial Transformation And Upgrading

In the 10 years from 2005 to 2015,China's Outward foreign direct investment has been on a steady rise.In 2016,China surpassed Japan to become the second largest exporter of OFDI capital after the United States.Despite the global economic downturn in the international environment,China's OFDI still shows a steady growth trend.In 2016,China's outbound direct investment grew by 34.7%,hitting a record high of $196.15 billion,compared with a 2% drop in global outbound direct investment.In terms of China's deepening opening-up and promoting economic transformation and upgrading,the impact of OFDI is also increasingly evident.China has entered a period of high-quality growth,with serious overcapacity in some industries,unreasonable allocation of resources and lack of innovation becoming increasingly prominent problems.China's economic structure is in a critical period of transformation and upgrading.The upgrading of industrial structure has become the key to China's economic development.In order to promote the more stable and reasonable development of China's economy,it is of great practical significance to study how to expand OFDI's influence on the upgrading of domestic industrial structure.First of all,this paper defines the concept and related theories of OFDI and industrial structure upgrading on the basis of existing domestic and foreign scholars' research.Secondly,through the analysis of the current development status and status quo of OFDI and industrial structure upgrading,the author hopes to find the problems existing in the development process through the current development situation.When studying the impact of China's OFDI on the upgrading of industrial structure,we can start from the following two aspects: first,what impact OFDI with different investment motives has on the upgrading of industrial structure;Second,what kind of effect OFDI produces and how it affects the upgrading of industrial structure.The empirical results show that there is a significant positive linear correlation between OFDI flow and stock on the upgrading of industrial structure.It also proposes to expand the scale of foreign direct investment,continue to improve the level of foreign direct investment,expand investment in developed countries and accelerate the development of the tertiary industry,and actively use different types of foreign direct investment to improve the level ofupgrading of China's industrial structure and other policies.